On the heels of Persona launching a big round yesterday, one of its competitors and another big startup in the HR space has also secured some funding. hi bobLtd., a London-based company targeting the mid-market with an all-in-one platform handling various human resources functions, closed a $150 million Series C. The funding is valued at approximately $1.65 billion, the company confirmed to us. This was also the figure that came out leaked rumors On the market earlier this week, ahead of the company confirming today’s news.
General Atlantic led the round, with previous investors Bessemer Venture Partners, Battery Ventures, Eight Roads and Entry Capital among others investing. Hibob last raised a $70 million round (a round led by SEEK and Israel Growth Partners) in December 2020, about 10 months ago. Its valuation has more than tripled since then, a symbol of just how hot the market is for HR right now.
“Hot” and HR are not two words that you might usually hear in the same sentence. Functions that involve human resources – in Hibob’s case, tracking attendance, time off, compensation, payroll, benefits and ongoing surveys – are typically viewed as somewhat of the more dry, and often highly authoritative, aspects of working life.
Covid-19 and pandemic work practices—where the vast majority of knowledge workers were sent home for the better part of a year or more (and some of us are still here in our kitchens)—definite Forms have changed how we interface with work, and so HR systems have suddenly come into their own as a way to track things, and even help us all stay connected. are helping.
Hibob, which sells its platform as “Bob,” says it has seen a triple-digit growth in revenue over the past year, and that the opportunity has been to introduce its product — which also offers collaboration and other tools. Does – as a modern look at HR for the company.
“Our mission is to modernize human resources technology,” Hibob CEO Ronnie Zehvi, who co-founded the company with Israel David, told me last December. “We are a public management platform for how people work today. Whether it is remotely or physically collaborative, the challenges our clients face with work. We believe the clunky HR platforms of the future The system will not be annoying, huge platforms. We believe it should be different. We are a system of engagement rather than a record.”
While the company has its roots in Israel, it has its modern headquarters in London and another office in New York. It has 1,500 medium-sized customers operating in 134 countries, but right now it says that some 65% of its customers – including Aberry Partners Ltd, G.Networks, Revolt and Kazoo – are in the UK and other European markets.
The money will be used in an effort to tap more growth internationally to complement that existing base.
The past several years have seen a turning point in HR technology that characterizes all enterprise IT: the explosion of funding available to startups has led to a plethora of point-of-solution specialists addressing singular aspects of the larger HR process, Whether it’s payroll, or benefits, or recruiting and onboarding, or surveys and employee satisfaction, or training, or recruiting. However, the great gravitational pull of technology always brings us back to the concept of larger platforms, which are easier to steer their own way and potentially less expensive. In HR, those targeting small and mid-sized customers such as Hibob or Persona have a precedent in the form of Workday (and historically more companies like SAP).
Persio is an interesting company to consider compared to Hibob: It’s bigger but there are also smaller businesses in the mix of customers. When it announced its funding yesterday at a valuation of $6.3 billion, it noted that its next steps will be in broader workflow automation, which will create more of what you capture in HR systems (and Persona’s HR systems in particular). Will bring data to other applications in a more efficient way. . It will be interesting to see whether Hibob takes a similar route and how it chooses to develop its own platform over time. Human management, being focused on managing people, is kind of how a company runs its entire business, so there are a lot of avenues for that.
“hi bob We have created a solution that meets and anticipates the needs of modern, evolving businesses,” said Anton Levy, Co-President, MD and Global Head of Tech at General Atlantic, in a statement. “We have tracked the company over the years, and positive customer feedback further confirms that hi bobThe HR platform has become a mission-critical component of the HR tech stack. hi bob This will be our sixth investment in an Israeli company in less than two years, which reflects our strong belief in the country’s market. We look forward to supporting the business’s global growth as it redefines employee engagement and human resource technology.”